NetEnt has entered into an agreement to acquire fast-growing online
slot
supplier Red Tiger Gaming Limited (“Red Tiger”) in an all-cash deal with
an
initial enterprise value of GBP 200 million plus a possible additional
amount of
maximum GBP 23 million in 2022. The transaction will be completed
imminently and
is expected to be accretive to NetEnt’s EPS in 2020.
Established
in 2014, Red Tiger is a leading online supplier of casino games and
software
renowned for its daily jackpot games. The company has approximately
170
employees with operations in Malta, Isle of Man and Bulgaria. Red
Tiger’s
earnings before interest, taxes, depreciation and amortization (EBITDA)
is
expected to reach GBP 18 million for the full year 2019.

The deal is in
line with NetEnt’s vision to create the future of gaming. Over
the last several
years, the company has invested in a global infrastructure
focusing on customer
reach and regulated markets, supporting a platform for
scale. The acquisition
of Red Tiger gives NetEnt the opportunity to capitalize
on its scalable
technology to support future growth.

“I am very pleased to welcome Red Tiger
into the NetEnt Group. The acquisition
combines two of the leading and most
innovative companies in the online gaming
industry. We look forward to working
with Red Tiger’s fantastic team to enhance
our combined global reach and to
offer further value to operators and players.
The transaction will provide
significant revenue synergies across our markets
worldwide,” says Therese
Hillman, Group CEO of NetEnt.

Gavin Hamilton, CEO of Red Tiger,
comments:
“This is an exciting new stage of the Red Tiger story and we are
delighted to
become part of the NetEnt group. Accessing NetEnt’s unparalleled
distribution
network and geographic footprint will unlock new opportunities for
Red Tiger and
will further accelerate our growth. At Red Tiger we’ll remain
focused as always
on driving further innovation and we are looking forward to
working with NetEnt
on how to leverage our combined capabilities to create new
products that wow our
customers.”

NetEnt pays an initial consideration of
approximately GBP 197 million for 100
percent of the shares of Red Tiger. In
addition to the initial purchase
consideration, a remaining amount of maximum
GBP 23 million may become payable
in 2022 on an earn-out basis, subject to Red
Tiger’s financial performance over
the coming two years. This implies a maximum
enterprise value of GBP 223
million, corresponding to an enterprise value
multiple of c. 12 times current
year EBITDA. NetEnt’s income for the third
quarter of 2019 will include
approximately SEK 55 million of transaction- and
financing-related costs.

The acquisition is financed primarily through new
debt facilities provided by
Danske Bank and Nordea.

Lazard has acted as
financial advisor and Cirio Advokatbyrå has acted as legal
advisor to NetEnt in
connection with the transaction.

For additional information please
contact:
Therese Hillman, Chief Executive Officer, NetEnt AB (publ),
Phone: +46
(0)8 578 545 00
Therese.Hillman@netent.com

Roland Glasfors, Investor Relations
& Corporate Strategy, NetEnt AB (publ)
Phone: +46 760 024
863
roland.glasfors@netent.com

Press and media enquiries:
press@netent.com

This information is information that NetEnt AB (publ) is
obliged to make public
pursuant to the EU Market Abuse Regulation. The
information was submitted for
publication, through the agency of the contact
person set out above, at 13:15
CET on September 5th, 2019.

About NetEnt
NetEnt
AB (publ) is a leading digital entertainment company, providing premium
gaming
solutions to the world’s most successful online casino operators. Since
its
inception in 1996, NetEnt has been a true pioneer in driving the market
with
thrilling games powered by a cutting-edge platform. NetEnt is committed
to
helping customers stay ahead of the competition, is listed on NASDAQ
Stockholm
(NET–B) and employs around 1 000 people in Malta, Stockholm, Kiev,
Krakow,
Gothenburg, Gibraltar and New Jersey. www.netent.com